A SUPPLIER OF the American multinational Bunge was fined USD 933,150 (BRL 5 million) for destroying an area equivalent to 2,500 football fields in Piauí, in the Northeast of Brazil. Researchers interviewed by Repórter Brasil point out that deforestation in the Cerrado to make way for crops is the primary threat to the state’s wildlife.

São Francisco Farm, located in Palmeira do Piauí (PI), belongs to Igor Comparin. In January 2023, the illegally deforested area in the municipality was embargoed by the Piauí State Secretariat for the Environment and Water Resources (Semarh).

The producer received two environmental embargoes: one for deforesting 1,971.7 hectares without authorization and another for the suppression of 618.9 hectares in the property’s legal reserve, a remnant of native vegetation under mandatory protection. Additionally, there was a third fine of USD 147,330 (BRL 800,000) for establishing activities that use natural resources on the property.

An environmental embargo is an administrative sanction designed to halt productive activities that cause environmental damage. However, satellite images from the Global Land Analysis and Discovery (GLAD) lab, analyzed by the NGO AidEnvironment at the request of Repórter Brasil, indicate soybean planting on the property during 2023, including in some of the farm’s embargoed areas.

Between 2021 and 2022, the soy producer received loans from Banco John Deere, with resources from the Brazilian Development Bank (BNDES), to purchase agricultural machinery in Piauí.

Suspicion of “Grain Laundering”

In March 2024, more than a year after the fines and environmental embargoes, Comparin supplied soybeans to Bunge’s unit in Bom Jesus (PI), a neighboring municipality. According to fiscal documents accessed by Repórter Brasil, the grain’s origin is listed as Comparin Farm, also located in Bom Jesus (PI).

The property where satellite images indicate cultivation in an embargoed area is located 104 km from Comparin Farm and 92 km from Bunge’s unit. Sources interviewed by Repórter Brasil believe that the proximity between the farm with embargoed areas at the time of sale and the one listed in the fiscal documents as the production origin raises questions about the possibility of “grain laundering.” In this maneuver, a producer issues invoices from a property without environmental restrictions to disguise the “dirty” origin of soybeans produced in illegally deforested areas.

“There are indications that ‘soy laundering’ may have occurred in this case. It’s important to understand: what soy is being sold here?” warns João Gonçalves, director of Mighty Earth in Brazil. According to him, it is urgent for Bunge to strengthen its supply chain monitoring. “Bunge has a global commitment to eliminate deforestation by 2025. How will the company achieve this if it doesn’t control its direct suppliers? Action is needed now.”

When questioned by the report, Bunge stated that it “does not comment on commercial relationships.” In a note, the company claimed to consider the possibility of “triangulation” of grains “in procedures for analyzing social and environmental restrictions for sourcing” and that it verifies “whether the farm has the capacity to provide the volume being purchased, including on-site checks during harvest and grain loading when necessary.” Read the full statement here.

Igor Comparin’s lawyer, Fernando Chinelli, told the report that the previous owner of São Francisco Farm had an environmental license and had already deforested part of the property. He also explained that Igor Comparin later cleared an area of the farm. “This led to a series of fines against Igor, but everything was resolved afterward,” he claims. He sent Repórter Brasil a certificate of no environmental debts, issued by Semarh on September 23, 2024, stating that there were no active fines, embargoes, or Adjustment of Conduct Terms (TACs) against the producer.However, until the publication of this report, the embargoes remained active on Semarh’s transparency portal. When questioned by the report, Dênio Marinho, director of inspection at Semarh, said this was due to a lack of website updates. Furthermore, contrary to what the certificate of no debts states, he confirmed that Igor Comparin signed a TAC with Semarh related to the fines at São Francisco Farm. The agreement, according to Marinho, was signed in July this year, months after the transaction with Bunge.

Fire Contributes to Devastation

Between January 2022 and January 2023, 21 heat spots were detected in embargoed areas of Igor Comparin’s property, according to data from the National Institute for Space Research (Inpe). The satellite sensors used by Inpe detect high soil temperature points but cannot determine their nature, such as intentional burning or natural forest fires.

However, Dênio Marinho of Semarh explains that cutting vegetation is the first step in deforestation, which is usually followed by burning the area.

The fire associated with deforestation traps animals, which often cannot escape. “Deforestation leads to the loss of animals’ lives and habitats. If I lose individuals, I lose the opportunity to maintain biodiversity, which provides us with balance,” warns Daniel Guimarães, director of licensing at the state environmental agency.

The Piauí government does not monitor wildlife, making it impossible to quantify the animals affected in deforestation cases.

In cases of authorized deforestation, one of the necessary steps to obtain a Vegetation Suppression Authorization is a survey of potentially affected animals. Repórter Brasil consulted Semarh’s database and identified two reports presented by properties located within a 30 km radius of Igor Comparin’s farm. The two documents list over 90 different species that inhabit the region and could be impacted by the removal of native vegetation. Among these species are the Giant Armadillo and the Giant Anteater, both of which are threatened with extinction.

Financing for Machinery Purchases

With resources from BNDES, Banco John Deere SA, the financial arm of the machinery manufacturer, granted Comparin two loans in 2021 and 2022 for the purchase of agricultural machinery and implements, according to Rural Credit information accessed by Repórter Brasil. Both contracts remain active.

In the financing modality accessed by Comparin, BNDES releases the credit for the partner institution—in this case, Banco John Deere – to execute the operation. The loans were intended for purchasing machinery for São Pedro Farm, another property owned by the farmer in the Piauí region. Google Street View images from April 2024 captured brand machinery operating, including during soybean harvesting on the property with embargoed areas.

Banco John Deere denied that the machinery financed with BNDES resources was the same as those seen in the images. The company also stated that the property that took out the loans is not the same as the embargoed one and that it followed BNDES and Central Bank rules to approve and maintain the two loans for Comparin.

According to the rules of both institutions, only properties listed in the public embargo list of Ibama, the federal environmental agency, are prevented from obtaining new financing or may have their contracts terminated prematurely. In December 2023, BNDES extended the ban on financing to clients with embargoes for illegal deforestation, even if on properties not directly related to the financing contract, as long as they are listed by Ibama. Illegal deforestation identified by state agencies, therefore, falls outside the rule.

BNDES informed the report that it would request clarifications on the matter from Banco John Deere. In a note, the institution justified that “it is up to the financial agent to assess the client’s cadastral, legal, fiscal, and environmental situation before contracting, in addition to verifying its regularity throughout the operation’s duration, under penalty of early termination of the financing.” Read the full responses from both institutions here.

Wagner Oliveira, senior analyst at the Climate Policy Initiative/PUC-Rio think tank, believes that Brazil’s rural credit policy, led by the Central Bank, needs to improve the integration of credit operations with deforestation data. “It’s important to integrate state and municipal agencies’ databases to extend the measure related to embargoes,” he points out.

A study published by CPI/PUC Rio in July found that 31% of properties with deforestation obtained subsidized rural credit between 2020 and 2022, with financing totaling USD 2,5 billion (BRL 14 billion).

In Tapejara (RS), where he also produces soy, Comparin is under investigation for destroying four hectares of native forest using bulldozers and hydraulic excavators within a permanent protection area (APP). The inquiry, initiated in 2023, is being conducted by the municipality’s Public Prosecutor’s Office.

“Both the financial and productive sectors make promises, claiming they will apply stricter restrictions, but in practice, this doesn’t happen,” says Gonçalves.

Devastated Fauna

“The main threat to wildlife in Piauí is deforestation caused by agribusiness,” says Samanta Vieira Volpato, coordinator of animal protection at the Piauí Public Security Secretariat. In 2023, 128.7 thousand hectares were deforested in the state.

Experts warn that biodiversity is being devastated without even monitoring the affected species. “The state of Piauí had no concern for fauna,” acknowledges Daniel Guimarães, director of licensing at the state environmental agency. In April 2024, Piauí enacted the State Policy for the Protection of Wildlife and Domestic Animals, which requires producers to indicate the fauna affected and bear the cost of their rescue to obtain authorization for vegetation suppression.

Lilian Catenacci, a professor of Animal Health at the Federal University of Piauí (UFPI), explains that the felidae group – which includes jaguars and ocelots, both endangered species—is one of the most affected. “We have many jaguars in Piauí. When this area is destroyed, the animals leave, and then we have human-wildlife conflicts.” The loss of habitat, she emphasizes, drives animals closer to cattle and also impacts family farming.